0% purchase credit cards, naive query?


Going to sound a bit dense here but I can’t quite wrap my head around why companies would be offering these, and so I’m wondering if I’m misunderstanding what is being offered. Not a big user of credit cards.

So loads of companies offer these but for the sake of argument I’ll go with one of Virgins cards. My partner wanted to buy a few things and spread the cost out over a few months, so I thought one of these would be the best idea. I actually misread what was being offered slightly as I assumed the 0% interest for 28 months only applied to things you purchased in the first 60 days of owning the card, however that 60 day period is only to get their 0% interest offer for balance and money transfers. The 0% on card purchases appears to be valid on all purchases for the full 28 month period.

So reading it more carefully, am I right in understanding for the next 28 months, for any purchases made on the card, there will be no interest applied to the balance (as long as minimum payment is made), a 28 month interest free loan for purchases so to speak? I feel I must be misunderstanding as it seems overly generous?

What I don’t really grasp about this is why they offer it if I am understanding it right? The credit card company is making no money from this since they’re charging no interest? Is it simply that after the 28 month period they hope you’ll still have a balance on the card, and you’ll continue to purchase things and not pay the balance in full each month?

Honestly rather than PSHE or whatever schools call it now they should do lessons on this sort of thing.


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